Forecast: Maximum 1-Year Extension of Repayment Deferral for Financially Vulnerable Debtors

[Asia Economy Reporter Song Seung-seop] The Korea Deposit Insurance Corporation announced on the 23rd that it will extend the repayment grace period for financially vulnerable debtors who are unable to repay their debts normally.

KDIC manages debtors who have borrowed money from bankrupt financial companies, and among them, borrowers who have agreed to installment repayments through debt adjustment are eligible. The period is one year, and existing users can also apply. Interest during the grace period is waived.

In March last year, KDIC also implemented a 12-month repayment grace period as economic conditions worsened due to COVID-19. KDIC explained that since the debtors' repayment ability has not yet fully recovered, additional extension measures have been taken.

The installment repayment grace can be applied for by mail, email, or fax through notices and text messages sent to the debtors. After confirming eligibility, the repayment grace will be granted.

KDIC emphasized, “We will continue to make greater efforts to minimize the damage to economically vulnerable groups caused by crises such as COVID-19 and to realize the social value of public institutions and inclusive finance.”

This content was produced with the assistance of AI translation services.